Ray Dalio says AI stocks could plunge despite tech promise
Ray Dalio stated that during a bubble period, even the most successful companies could see their stock prices plunge by about 80%.
He believes that while the emergence of major new technologies brings excitement and reasons to invest, promising technological prospects do not guarantee excellent stock returns due to high valuations and incoming competitors.
According to his gauge, the current market is at 75% of the extreme levels seen in 1929 and 2000. The pricking of a bubble typically occurs when investors need to convert wealth into cash, frequently triggered by tightening monetary policies or wealth taxes on July 17, 2026.